Australian Banks Remain Too Optimistic on Mortgages

Dow Jones
08/13

0142 GMT - Australian banks remain overly optimistic about the outlook for mortgage growth, Morgan Stanley analysts say. The analysts tell clients in a note that recent drops in mortgage application volumes disclosed by Commonwealth Bank and ANZ are unsurprising, but that the pair's forecasts of 4.5% industry growth in fiscal 2027 look too high. The MS analysts warn that the outlook for mortgages is uncertain amid coming changes to property-related tax concessions, and say that major lenders' disclosures around home loans have been limited. They want more detail.

 

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